Which of the Following Statements Concerning Customer Defection Rates Is

Multiple Choice

Which of the following statements concerning customer defection rates is incorrect?

A) Defection rates are determined by customer loyalty.
B) The longer a company holds on to a customer, the volume of customer-generated unit sales is greater and the average cost of each sale is lower.
C) Lowering customer defection rates allows a company to achieve a lower cost structure.
D) R&D should address the issue of customer loyalty in product development.
E) There is a positive relationship between length of time that a customer stays with the company and profit per customer.